NC POST LICENSING – 303 EXAM WITH COMPLETE SOLUTIONS!!!!
ALREADY GRADED A+
A Licensee may not earn compensation when there license - VIP - (ANSWER)is INACTIVE or EXPIRED
A Licensee can receive compensation that was earned WHEN - VIP - (ANSWER)the license was current
and active even if inactive of expired after
A BIC may NOT pay a licensee's ENTITY - (ANSWER)unless the entity has a firm license.
A Licensee can share commission with parties BUT - (ANSWER)1) Must be in writing - as part of the
agreement
2) Must be subject to Lender Approval in case of loans
3) Disclosed on the Closing Disclosure
4) Is considered a gift
5) Only with principal or client (not others)
Compensation ALWAYS flows through the firm - (ANSWER)1) from the BIC
2) NO payment directly by the firm
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
When Paying Non-Affiliated Brokers or Firms - (ANSWER)1) Best Practice to put in writing - Not a Rule
2) May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE license
,NC POST LICENSING – 303 EXAM WITH COMPLETE SOLUTIONS!!!!
ALREADY GRADED A+
3) DOCUMENTATION in broker's file:
- Written documentation regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099
When receiving Bonuses & Incentives - (ANSWER)Disclosure AND consent by Principal is REQUIRED
RESPA Prohibits - (ANSWER)KICKBACKS to
Settlement Service Providers
- BANKS
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS
RESPA STATUTE - (ANSWER)Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
- ENFORCED BY HUD
RESPA does not apply to (VIP) - (ANSWER)1) Vacant Land Transactions
2) Cash Transactions
3) Seller Financed Transactions
) Commercial Transactions
, NC POST LICENSING – 303 EXAM WITH COMPLETE SOLUTIONS!!!!
ALREADY GRADED A+
RESPA CO-OWNERSHIP with different settlement service providers - (ANSWER)Also known as:
- Affiliated Business Arrangements (ABAs)
- Controlled Business Arrangements (CBAs)
These are permitted but 3 requirements:
1) Disclosure of the relationship
2) Use of the service provider cannot be forced
3) must disclose fees
RESPA PROHIBITS - (ANSWER)Real Estate Licenses from forcing client or customer to use a particular
settlement service provider
Commercial Real Estate Lien Act says - (ANSWER)Lien May be placed on Commercial properties for
commercial service rendered in a sales or lease transaction
Commercial Real Estate Lien Requirements - (ANSWER)1) Written Agreement specifying services and
compensation
2) Must be a listing agent to file
3) Must be limited to THE subject property
Commercial Real Estate Lien Tim Requirements - (ANSWER)1) Not until 30 days of closing or possesion
ALREADY GRADED A+
A Licensee may not earn compensation when there license - VIP - (ANSWER)is INACTIVE or EXPIRED
A Licensee can receive compensation that was earned WHEN - VIP - (ANSWER)the license was current
and active even if inactive of expired after
A BIC may NOT pay a licensee's ENTITY - (ANSWER)unless the entity has a firm license.
A Licensee can share commission with parties BUT - (ANSWER)1) Must be in writing - as part of the
agreement
2) Must be subject to Lender Approval in case of loans
3) Disclosed on the Closing Disclosure
4) Is considered a gift
5) Only with principal or client (not others)
Compensation ALWAYS flows through the firm - (ANSWER)1) from the BIC
2) NO payment directly by the firm
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
When Paying Non-Affiliated Brokers or Firms - (ANSWER)1) Best Practice to put in writing - Not a Rule
2) May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE license
,NC POST LICENSING – 303 EXAM WITH COMPLETE SOLUTIONS!!!!
ALREADY GRADED A+
3) DOCUMENTATION in broker's file:
- Written documentation regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099
When receiving Bonuses & Incentives - (ANSWER)Disclosure AND consent by Principal is REQUIRED
RESPA Prohibits - (ANSWER)KICKBACKS to
Settlement Service Providers
- BANKS
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS
RESPA STATUTE - (ANSWER)Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
- ENFORCED BY HUD
RESPA does not apply to (VIP) - (ANSWER)1) Vacant Land Transactions
2) Cash Transactions
3) Seller Financed Transactions
) Commercial Transactions
, NC POST LICENSING – 303 EXAM WITH COMPLETE SOLUTIONS!!!!
ALREADY GRADED A+
RESPA CO-OWNERSHIP with different settlement service providers - (ANSWER)Also known as:
- Affiliated Business Arrangements (ABAs)
- Controlled Business Arrangements (CBAs)
These are permitted but 3 requirements:
1) Disclosure of the relationship
2) Use of the service provider cannot be forced
3) must disclose fees
RESPA PROHIBITS - (ANSWER)Real Estate Licenses from forcing client or customer to use a particular
settlement service provider
Commercial Real Estate Lien Act says - (ANSWER)Lien May be placed on Commercial properties for
commercial service rendered in a sales or lease transaction
Commercial Real Estate Lien Requirements - (ANSWER)1) Written Agreement specifying services and
compensation
2) Must be a listing agent to file
3) Must be limited to THE subject property
Commercial Real Estate Lien Tim Requirements - (ANSWER)1) Not until 30 days of closing or possesion
